In our market update last week, which can be found here, we discussed our observation that the market is not rallying through the current earnings season like it did in February when Q4 earnings were released. After a strong rally, it seems that the market is settling into a trading range between 1,350 and 1,425 on the S&P 500 (SPY). Following the declines at the end of the week, it looks like the market may test the bottom of this range. If a breakdown from this range emerges, the market could see sharper declines in the near term.
Monday, July 23, 2012
Market Update: The New Trading Range And How To React
[First appeared on Seeking Alpha on May 7, 2012]
In our market update last week, which can be found here, we discussed our observation that the market is not rallying through the current earnings season like it did in February when Q4 earnings were released. After a strong rally, it seems that the market is settling into a trading range between 1,350 and 1,425 on the S&P 500 (SPY). Following the declines at the end of the week, it looks like the market may test the bottom of this range. If a breakdown from this range emerges, the market could see sharper declines in the near term.
In our market update last week, which can be found here, we discussed our observation that the market is not rallying through the current earnings season like it did in February when Q4 earnings were released. After a strong rally, it seems that the market is settling into a trading range between 1,350 and 1,425 on the S&P 500 (SPY). Following the declines at the end of the week, it looks like the market may test the bottom of this range. If a breakdown from this range emerges, the market could see sharper declines in the near term.
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